The only constant in life is change, and business organizations are not different. Environmental uncertainties made transition to knowledge-based economies made establishment of effective CKM mechanisms within companies crucial to business competitiveness. This chapter examines the importance of business environmental conditions in driving an organizational change, viz. CKM. The basic premise of the chapter is that business organizations need to strive to adapt to opportunities as well as challenges brought by constant, complex, rapid, and discontinuous environmental uncertainties. In their quest for SCA, organizations need to leverage their DCCs in scanning environmental drivers for CKM as well as in the crafting a holistic CKM strategy.
This part of the chapter discusses basic concepts related to organizational environments and the relationship between organizations and their environments. It identifies and explains major types of environments (the general and the task environments), typologies of environmental changes, organizational change programs, and the relationship between environments and organizational effectiveness.